I've been reading similar stuff.sophie wrote: ↑Tue May 12, 2020 7:51 amWSJ had a piece a few days ago about how the mortgage market is about to run into serious problems. Watch out for municipal bonds, mortgage backed securities, repurchase agreements, junk bonds etc. Which is what Ally is probably using to give you that interest rate.
T bills and Treasury money markets for me, at least until all this settles out. We could see another 2008 frozen-credit event - not saying it will happen just that it might.
But I can see why ocho is so blasé about it. Collect your higher interest rate, then if the bank goes under, you'll get your money anyways through the FDIC. It's almost like you only win if you DO go with the highest interest rate savings accounts. Unless FDIC fails, like because tons of people are unemployed because of a government lockdown, and they're drawing down their bank accounts... but I really don't know enough about it to do anything but speculate.